Italy ends VAT split payment for FTSE MIB-listed companies from 1 July 2025

What changed in detail

Decree-Law 17 June 2025, n. 84, Article 10, as converted by Law 30 July 2025, n. 108, repeals letter d) of article 17-ter, comma 1-bis, of DPR 633/1972. That letter had extended the split-payment mechanism (scissione dei pagamenti) to companies listed in the FTSE MIB index of Borsa Italiana. Under split payment, the buyer pays the VAT shown on the supplier’s invoice directly to the State instead of to the supplier.

Comma 2 provides that the repeal takes effect from 1 July 2025 and applies to transactions for which an invoice is issued from that date. The conversion law added that conduct adopted by taxpayers before the conversion law came into force is preserved.

Split payment continues to apply to public administrations, to companies controlled by public administrations, and to the other categories still listed in article 17-ter.

What it means

Since 1 July 2025, suppliers to FTSE MIB-listed companies that are not otherwise within article 17-ter have charged and collected VAT in the normal way and paid it over themselves. Their invoices no longer carry the split-payment annotation. For suppliers who had been in a structural VAT credit position because of split payment, this helps cash flow.

The repeal is still in force. Split payment itself continues for the public sector: the Council extended Italy’s EU derogation to 30 June 2029 (record). Article 17-ter of DPR 633/1972 is abrogated from 1 January 2027 and replaced by the VAT Testo unico, D.Lgs. 10/2026 (record).